CG Power, Rail Vikas Nigam, and Indus Towers are among stocks that could move from the 'midcap' to the 'largecap' category, according to Nuvama Institutional Equities' projections on the upcoming Association of Mutual Funds of India (AMFI) semi-annual classification for the first half of 2025.
Among other companies that could be categorised as largecaps could be ICICI Prudential Life, Polycab India, Cummins India and Info Edge. Among new listings, Hyundai Motor India, Bajaj Housing Finance, NTPC Green and Swiggy might make it to the exclusive list.
AMFI classifies largecap companies as those ranked from 1-100 in market capitalisation, midcap companies from 101-250 and smallcap companies as those ranked from 251 onwards.
Based on current average market capitalisation levels, the largecap cut-off is expected to rise to approximately Rs 99,200 crore, up from Rs 84,000 crore in June 2024. Similarly, the midcap threshold is projected to increase to around Rs 32,4oo crore, compared to Rs 27,500 crore in June 2024.
The new list will come into effective from February to July 2025.
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On the flip side, as per Nuvama, Adani Total Gas, NHPC, Shree Cements, IDBI Bank, Union
Bank of India, Bharat Heavy Electricals, Canara Bank and Jindal Steel & Power might move from being ranked as largecaps to midcaps. Mankind Pharma, Apollo Hospitals Enterprises and IndusInd Bank are 'border-line' suggestions.
There are several stocks that are potential candidates for midcap inclusion in the upcoming categorisation. These include GE T&D India, 360 One WAM, Aditya Birla Fashion, and Kaynes Technology. Among the new listings, Waaree Energies, Premier Energies, Ola Electric Mobility, and Brainbees could be included.
Some midcap stocks could be moved to the smallcap list. These could include ITI, ZF Commercial, Delhivery, Hindustan Copper, Poonawalla Finance, Global Health, Motherson Sumi Wiring India, Gland Pharma, Bandhan Bank, Mangalore Refinery, Go Digit General Insurance, and Star Health and Allied.
While recategorisation helps, it might not necessarily impact immediately in term of flows, added the report. "As the stocks move up from lower categorization to higher, it increases their visibility. Fund managers typically further analyse such stocks and add them as per their rationale while complying with the scheme mandate."
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